Incentivize collaboration in MSME training and mentorship

Policies Involved

Renovation

Governor of DKI Jakarta Regulation No. 2 of 2020 on Integrated Entrepreneurship Development

Challenge

Micro and small entrepreneurs often face limited budgets and resources to appropriately train themselves and their workforce. Organizations such as large businesses, universities, and non-governmental organizations can be effective catalysts for smaller-sized enterprises to access market and industry knowledge, and evolve through training, mentorship, and other activities. However, there is currently little incentive for organizations to invest their resources to do so, especially if the activities don’t align with their organizational objectives. For example, larger businesses in DKI Jakarta often conduct training for MSMEs as part of their corporate social responsibility (CSR) program, which are separate from the commercial activities of the company.

Current Policy

At the regional level, Jakpreneur has engaged external stakeholders - including startup companies and higher education institutions - to assist in delivering training for MSME entrepreneurs participating in the program. To date, Jakpreneur has worked with at least 120 collaborators¹. However, benefits that will be received by potential collaborators are currently not clearly established in the Governor of DKI Jakarta Regulation No. 2 of 2020 on Integrated Entrepreneurship Development, which may discourage them from committing their involvement in the Jakpreneur program and assisting MSMEs beyond the delivery of one-off training.

Action

Making it lucrative for potential collaborators to participate in the Jakpreneur program can incentivize them to provide upskilling programs for and mentor their micro and small counterparts. More attention should be paid to benefits that the collaborators can receive for delivering value to MSMEs beyond one-time training, such as through mentorship or business partnership. Furthermore, this policy action should also involve the creation of collaboration agreements that are in line with the collaborating organizations’ organizational strategy.

action points

parties involved

Detail the benefits that collaborators will receive

Provincial Government of DKI Jakarta

Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta

Collaborating organizations

Create a collaboration agreement that is in line with the collaborator's company strategy

Provincial Government of DKI Jakarta

Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta

Collaborating organizations

Indicator of Success

Number of collaboration agreements between Jakpreneur and collaborators

Number of mentors involved in Jakpreneur

Number of trainers or training organizations involved in Jakpreneur

Duration of inter-organizational relationship between Jakpreneur and collaborators

Conversion from trainer to mentor for MSMEs

Conversion from trainer to business partner for MSMEs

Duration of inter-organizational relationship between MSMEs and collaborators

Encourage MSME procurement

Dukung UMKM, Pemprov DKI Gandeng 120 Kolaborator Gabung di Jakpreneur. https://wartakota.tribunnews.com/2022/02/23/dukung-umkm-pemprov-dki-gandeng-120-kolaborator-gabung-di-jakpreneur

For many entrepreneurs, the decision to turn into innovations depends on the ease to adopt technology, trained workforces, and multiple sources of finance. Yet, navigating the complex regulation is a major challenge for most lay business people. To expedite the economic recovery post-pandemic recession, the stakeholders in the ecosystem are urged to formulate the right policy to simplify such challenges.

— Kariem El-Ali, Senior Policy Advisor

Quantitative Demographics

Gender Distribution

Highest Education Attainment

Owner's Age

Marital status

Number of Dependent(s)

Qualitative Demographics

Education

Gender

SEC

Industry

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Age

Codesign Demographics